MATER DEI SCHOOL

CLASS XI C
UNIT TEST 1
SUBJECT: ACCOUNTANCY
MAX. MARKS: 25 DURATION: 50 MINUTES

1. Which of the following transactions will not be recorded from the books of accounts:
(i) Purchased machinery for manufacture
(ii) Paid Salaries and Wages
(iii) Purchased a LCD for personal use, paying the amount from personal bank
account
(iv) Purchased machinery for resale (1)
2. Which of the following is not a qualitative characteristic of accounting information
(i) Reliability
(ii) Comparability
(iii) Understandability
(iv) Materiality (1)
3. Sale is recognized as revenue
(i) When a contract for sale is entered into
(ii) At the point of sale or performance of service
(iii) After the expiry of credit period allowed by debtors
(iv) After the money collected from the customers (1)
4. Fall in the value of an asset due to its use is termed as _____________. (1)
5. Which accounting principle requires that personal expenses of proprietor or partners
should be debited to Drawings account?
(i) Business Entity
(ii) Going Concern
(iii) Money Measurement
(iv) Accrual (1)
6. “Closing Stock is valued at lower of cost or market price.” Which principle of
accounting is applied here? (1)
7. State True/False with reason- “According to the Convention of Consistency
accounting policies and practices once adopted cannot be changed under any
circumstances.” (1)
8. Calculate Total Assets if: Capital is Rs.2,00,000; Creditors Rs.50,000; Revenue during
the year Rs.3,00,000 and Expenses during the year Rs.2,00,000. (1)
9. State any two objectives of following Accounting Standards. (1)
10.Define the term: Discount (1)
11.During the life time of an entity, accounting produces financial statements in
accordance with which of the following concepts:
(i) Matching
(ii) Conservatism
(iii) According Period
(iv) Cost (1)
12. Why are the Investors interested in the Accounting Information? (1)
13. Differentiate between Accounting and Book-Keeping. (any two points) (2)
14. Explain any two advantages of Accounting. (2)
15. Explain Money Measurement and Matching Concept. (3)
16. Show an Accounting Equation for the following g transactions:
(i) Mahesh started business with Cash Rs.1,00,000; Machinery Rs.6,00,000 and
Goods Rs.80,000
(ii) Half of the above goods sold at a profit of 10% on cost and half the payment is
received in cash.
(iii) Depreciation on Machinery to be provided @ 10%
(iv) Bought Motor Bike for personal use Rs.20,000.
(v) Paid Salaries Rs.10,000 including Rs.2,000 as advance. (6)